Despite predictions otherwise, 2022 will not be the year that a federal data privacy law is enacted. While the bipartisan American Data Privacy Protection Act (ADPPA) proposal made it to the House Committee on Energy and Commerce, it was blocked from moving to the full House over concerns that the law would preempt existing and newly enacted state privacy laws with higher level of consumer protections, and otherwise negate work done at the state level to address data privacy.

With the absence of a comprehensive federal law, states have taken the lead this year more than ever. Four states (Colorado, Connecticut, Utah and Virginia) passed state privacy laws this year, joining California in regulating the data collection practices of businesses and employers in-state.

The California Privacy Protection Agency (CPPA) recently issued modified regulations under the California Privacy Rights Act (CPRA), touching on everything from asymmetry in the presentation of choice to consumers via website banners to heightened verification procedures in response to data subject requests. Inaction by the California state legislature to extend a human resources exemption means that HR files and employee data will be now regulated under the CPRA as of Jan. 1, 2023. Colorado's Attorney General also has issued draft regulations under that state's law.

Because variances between the state privacy laws exist, businesses may view the roll out of a fractured state-by-state compliance program as...

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